COMMENTARY: When it comes to rulemaking, your voice matters

Participating in the comment period for a proposed rule is a powerful tool for small businesses to influence and change the final rule, thereby protecting and enhancing the industry for small businesses.

A prime example of this success is the Small Business Administration’s recent HubZone proposed rule. The SBA received more than 300 comments on this proposed change – a remarkable six-fold increase compared to the usual 50 comments.

This substantial feedback is prompting the SBA to redraft several sections of the proposed rule before it becomes final.

Congratulations to those who participated – you’ve made a positive impact for all! If issued, this final rule will require small businesses to remain proactive, adapting strategies that worked in 2024 to a new regulatory landscape.

Your engagement is not just a defense, it’s a strategic move to ensure a level playing field in the government contracting arena.

Four Compelling Reasons to Participate in Comment Periods

1. Influencing Final Regulations

Small businesses can provide specific feedback that shapes the final rule, potentially reducing compliance burdens and improving flexibility.

2. Shaping a Favorable Regulatory Environment

By engaging in the process, businesses help create rules that reflect real-world impacts, resulting in regulations that are more practical and business friendly.

3. Avoiding Surprises

Staying involved allows businesses to anticipate changes, enabling early preparation in areas like compliance, budgeting, and strategic planning.

4. Building Relationships with Regulators

Active participation establishes businesses as stakeholders, leading to greater influence in future regulatory discussions and potential early insights.

More Proposed Rules Coming

With the recent presidential election results, current SBA officials appointed by President Biden are under pressure to issue regulatory changes quickly before being replaced by appointees from the Trump administration.

As the SBA continues to roll out proposed rules, it’s essential to stay informed and ready to comment.   

These upcoming proposed rule changes from the SBA could significantly impact the small business contracting community:

1. Small Business Contracting: Increasing Small Business Participation on Multiple Award Contracts

Issued on October 25, 2024, this proposed rule, aims to extend the “Rule of Two” to task and delivery orders under multiple-award contracts (MACs), increasing opportunities for small businesses in government contracting. Be mindful of the proposed exceptions – Federal Supply Schedules may still be exempt, which could benefit some while disadvantaging others. The comment period closes on December 24, 2024.

2. Mentor Protégé Joint Ventures (MPJV)

This imminent proposed rule, linked to the Final Rule regarding “HubZones,” will be significant. If unchanged, it could prevent MPJVs from participating in contracts lasting five years or more and/or prevent them from participating in Indefinite Delivery, Indefinite Quantity (IDIQ) contracts.  

Post Election Possibilities

A new administration introduces an intriguing dynamic in rulemaking. It begs the question: What happens to the proposed rules currently in process?

After the inauguration, it’s likely that the White House, through the SBA, will issue a memorandum delaying or suspending the implementation of new regulations pending a review by the new administration to assess how rules align with the new president’s and SBA Administrator’s priorities.  Depending on this alignment, the SBA can 1) continue the process and issue the final rule; 2) cancel the final rule; or 3) start new rulemaking to tailor the rule to align with the new administration’s priorities.

Conclusion

In summary, your participation matters, and I encourage you to remain active. The SBA’s rules will constantly evolve, and your involvement in the rulemaking process – by participating in the comment period of a proposed rule – is critical.

Considering current and future proposed rules, I urge small businesses to stay engaged and participate in rulemaking.  Your voice matters. 

Robb Wong is the managing executive, Deep Water Point & Associates. Robb is the former associate administrator, Office of Government Contracting & Business Development for the Small Business Administration.